The Lower Eastern Times Opening The Third Eye
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Equity Group Holdings has achieved a 12% increase in profit after tax, reaching Sh48.8 billion, up from Sh43.7 billion for the year ending December 31, 2024.
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This growth highlights the continued success of the Group’s diversified business model and sound financial management.
The Group’s profit before tax rose by 17% to Sh60.7 billion, while earnings per share (EPS) increased by 11% to Sh12.3, reflecting the Group’s strong financial performance.
Regional operations accounted for 49% of total assets and 54% of profit before tax.
To reward its shareholders, the Group proposed a dividend of Sh4.25 per share, representing a payout ratio of 34.5%, further emphasizing its commitment to delivering value to shareholders.
In releasing the full-year 2024 results, Equity Group Holdings Managing Director James Mwangi noted the institution’s resilience despite global economic challenges.
“Our financial strength provides us with the flexibility to seize opportunities as the regional economy offers diverse avenues for growth. The Group’s liquidity and capital position remain strong, positioning us to better serve our customers in the years ahead,” Mwangi said.
The Group’s total deposits grew to Sh1.4 trillion, with the customer base expanding to 21.6 million, demonstrating the scale and reach of its deposit franchise.
Its liquidity position stayed robust, with cash and cash equivalents increasing by 19% to Sh345 billion, while investment securities rose to Sh512 billion, contributing to an overall liquidity ratio of 57%.
Equity Group’s focus on regional expansion and product diversification continues to drive growth, with its regional subsidiaries contributing 49% of total assets, 48% of total loans, and 54% of profit before tax, further diversifying its revenue base.
The Kenyan subsidiary, while still a key contributor, accounted for 46% of total revenue.
Equity Bank Rwanda’s revenue grew 36% year-on-year, Tanzania’s by 20%, and the DRC’s by 9%. Meanwhile, the profit after tax (PAT) for Equity Bank Rwanda grew by 30%, Tanzania by 107%, Uganda by 186%, and the DRC by 29%, signaling increased contributions from regional operations.
Equity Bank Kenya has cut its base lending rate three times in the last six months, signaling its intent to grow its loan book as Kenya’s economy recovers.
Lower interest rates are expected to reduce borrowing costs, offering businesses more affordable credit and increasing disposable income for households, thereby boosting consumer spending.
The value of business processed through Equity Mobile increased by 67% year-on-year, from Sh1.895 trillion to Sh3.174 trillion, while Equity Online for business (EazzyBiz) grew by 21%, from Sh3.165 trillion to Sh3.841 trillion.
The interoperable Pay With Equity (PWE) for merchants grew by 14%, from Sh1.884 trillion to Sh2.149 trillion, and ATM transactions rose by 21%, from Sh398.6 billion to Sh481.4 billion.
“Equity Group remains committed to driving positive change. Our focus on financial inclusion, regional expansion, and sustainable growth will continue to make us a catalyst for economic empowerment and resilience across Africa,” Mwangi stated.
He expressed optimism about the company’s future, adding that the Group would continue leveraging its strengths to create long-term value and impact for its shareholders and customers.
